PASOK: Four important sources of uncertainty for the economy that the ND is silent on

For governmental “appearance” and real “being” of the economy says PASOK

Just twenty-four hours after the Prime Minister’s triumphalism because the Economist ranked Greece as the “leader in economic performance” of all countries in the world for 2022, the Report of the State Budget Office to the Parliament for the third quarter of the year, hits the PASOK reports alarm bells. He speaks of a governmental “appearance” and the real “being” of the economy.

According to the party’s financial sector, the State Budget Office’s Report to the Parliament emphasizes that behind the nominal GDP growth rates and the over-optimistic scenario of the government’s budget for 2023, there are four important sources of uncertainty, but which the ND carefully chooses to keep quiet.

1. Significant slowdown in economic growth in the coming months due to the negative impact of inflation on real disposable income and consumption but also due to the gradual withdrawal of most fiscal support measures.
2. Burden of public and private debt servicing due to the increase in interest rates. In terms of fiscal risk in particular, if interest rates exceed nominal GDP growth, the debt-to-GDP ratio will move upward and higher primary surpluses will be required.
3. Back to current account deficits. The optimistic estimates for the course of tourism did not yield what was expected in terms of overall growth rate nor in terms of improving the current account balance. The deficit in the 10th month of the year shot up compared to the corresponding period last year, surpassing the level of 13 billion euros.
4. The smooth functioning of democratic institutions has suffered a significant blow from the surveillance scandal and from the deterioration of the quality of governance and trust in the rule of law, which will have long-term negative consequences for the economy as well.

“Against the cheap communication celebrations and pre-election fiestas of the ND which are orchestrated to cover up the failure of its policies, PASOK-Movement for Change puts forward an elaborated economic program, with a social democratic identity, for a modern production model, for the reduction of inequalities and for a strong social state” concludes Harilaou Trikoupi.

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